02 July 2021
Home Sweet Home: Why Rent When You Can Buy?
According to the Intermediary Mortgage Lender Association’s (IMLA) 2019 research, buying a home rather than renting could mean that an average homeowner is £350,000 better off over 30 years.
What the figures say
For example, The research calculated that monthly mortgage repayments on the average house price of £230,000 home would be £133,700 cheaper than paying rent over 30 years in the same property. The research also shared that after 30 years, the homeownership can benefit even further as the owners would no longer have to make mortgage payments, however someone who was renting would continue to pay a monthly sum into and throughout retirement.
IMLA’s report suggests that while private renters might expect to pay out £451,600 over the next 30 years, taking into account a projected increase of 2% in rent per year, a homeowner on a 25-year repayment a homeowner would pay £133,700 less than a private renter over a thirty-year period.
Although there are increased benefits to buying a home, saving for a hefty deposit can be a tough ask and it’s one of the main reasons why many people settle for the option to rent their home than buying it. The research acknowledges that tight lending criteria makes it hard for potential homeowners to buy a property and buyers are increasingly finding it difficult to find or save much larger deposits.
However, if your mind is set on buying that ideal home then our shared ownership scheme is available to help you get one step closer to becoming a proud home owner.
Own a home with shared ownership
Shared ownership is a great way to get on to the property ladder when you can’t quite afford to buy a home on the open market. Based upon your affordability, you can buy an initial share of your home between 25%* and 75% and make a small monthly rent payment for the remaining share that we retain.
You can purchase additional shares as and when you can afford it, this is called ‘staircasing’. There are no timescales or deadlines on when you must staircase however, the more shares you purchase, the lower your monthly rent payments become.
*minimum shares may vary depending on the individual property. Please speak with our sales team for further information.
2, 3 & 4 bedroom homes at Lady Ediths in Scarborough
Take our new build 2, 3 and 4 bedroom homes at Lady Ediths in Scarborough for example. They are available to buy with shared ownership in the sandy coastal town, so whether you’re looking for that perfect retirement home or you want to build new foundations for your growing family, there’s a home for anyone who aspires to be free of the rental market and reap the long-term financial benefits of owning their home.